What does PPC campaign success look like?
PPC campaign success is of course the objective of all our clients.
There are two metrics that together, define the success of a PPC campaign.
With mid and high funnel campaigns, it gets a bit more complicated. But they do contribute to conversions so with the right time frames, their success can be measured the same way.
The most important key performance indicator is net advertising margin (NAM), not return on ad spend (ROAS).
The primary ppc campaign success metric is “net advertising margin”, which accounts for not only the return on ad spend (individual campaign efficiency in converting ad spend into conversion value), but also conversion volume and value.
NAM accounts for not only the return on ad spend (individual campaign efficiency in converting ad spend into conversion value), but also conversion volume and value. Net advertising margin is calculated as [ (total conversion value) minus (total ad spend) ] over a time period.
NAM accounts for not only conversion efficiency but also conversion volume.
Return on ad spend (ROAS) is a measure of efficiency.
ROAS measures how efficiently a campaign, or account converts ad spend into conversion value. It is simply (total conversion value) divided by (total ad spend).
We track all conversions and use a model to estimate the value of each type conversion.
Tracking of all conversions and their value to each individual advertiser is crucial to the medium and longer-term success of all PPC campaigns.
Without that, success cannot be measured. 100% conversion tracking feeds back metadata into PPC campaigns which continuously improves their performance when coupled with automated bidding. Conversion tracking also provides you, the advertiser with clear information showing how much value your advertising investment is delivering.
As a result, Blastoff Labs clients receive clear, sharp reports detailing all important key performance indicators and metrics, comparing them period-to-period.
Conversions need to be assigned an estimated value.
We consider the value of each conversion when developing a conversion value model for each account, which is integrated into our reporting.
In Shopping (e-Commerce) campaigns, valuing conversions is simpler because the value of each transaction is reported. In those campaigns, we model the gross margin of each product group into our calculations.
Ad spend allocation optimization, in accounts with more than one campaign, can often be more important than ongoing optimization of the individual campaigns.
We have developed an ad spend allocation model which allows us to adjust the ad spend flowing into individual campaigns, giving us the ability to adjust your ad spend to fit shifting market conditions.